Kelowna REALTOR® Darcy Nyrose (PREC*) answers : “What Do I Need to Know When Buying a New Home?”
If you're buying a new home in Kelowna, you want your advice to come from an experienced real estate agent like Darcy Nyrose. Prior to moving to Kelowna in 2008, Darcy worked in Vancouver as Vice President of Sales for Polygon Homes and launched over 30 communities. Now firmly settled in Kelowna for the past 12 years, Darcy has been a part of over 54 communities and counting, providing sales, marketing, consulting, or working with buyers. Whether you are buying a condo or townhome in a new community, or you are buying a single family home from a builder, Darcy and the team at Nyrose and Associates have the experience and knowledge to guide you through the experience.
When to Buy In - When you buy, you're locking in that price. If the market continues to rise, this is great for your investment. This is why some investors and homeowners like to buy in the pre-construction phase of a development. But, buying before something is built is a risk. You won't have a firm move-in date, and you are buying based on a plan. Throughout the course of planning and construction, changes are to be anticipated. When we work with buyers who are looking for a new condo, townhouse or single family home, we are able to guide them to the right project based on their comfort level and timeline.
The Model/Show Home Vs Your Home - The showhome or model home is often a representation of all the things your future home could be. Be sure you know what is standard in the home, what you may have for options, and what the available upgrades are.
The Contract - Your contract to purchase a new home is firm and binding. But, there is such a thing called a Force Majeure clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond a party's control. Which could delay the completion date of your home for the duration of the unexpected delay. This is another reason why it's important to use a REALTOR® experienced in new home sales.
Costs and Payment Terms - Buying new can have a different payment structure than buying a re-sale home. Generally, you will pay a deposit to secure your home, with the rest (mortgage) due upon completion. New homes are not GST exempt in BC however a GST rebate can be applicable if your purchase is under $450,000. But in some cases you may not be eligible for the rebate and there can be exemptions for Property Transfer Tax as well. Again, another important reason to use a real estate agent with experience in helping buyers buy new.
New Home Warranty - Home warranties are mandatory on new construction builds in BC. New home warranty is covered by third-party insurance providers but at a minimum must cover 2 years on labour and materials (some limits apply, 5 years on the building envelope including water penetration, and 10 years on the structure of the home.
Deficiencies and Post-Sale Customer Service - In a new build, there are bound to be some deficiencies which will get looked after post-build or even after you move in. We suggest using a real estate agent with knowledge in new construction to help you with this process.
Move-In is a Moving Target - In a new build, your move-in date is a moving target! While there on occasion a home might be ready before the anticipated completion date; generally one should plan for construction setbacks. Your REALTOR® can stay in touch with the developer/builder to provide you with updates along the way so you can plan appropriately.
Buying a new home is exciting! You get to be the first person to cook in the kitchen, use the bathroom, and make a house into a home. It might seem easy to walk inside a showhome and put down a deposit; however, we highly recommend that you find experienced REALTOR® representation to help you find the right new home/development project, get the right things in your contract, and provide you with the valuable expertise to make the process even easier.